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﻿1.0 Executive SummaryThis study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline industry within the ASEAN region. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. This research exhibits critical analysis pertaining to the current macro environment of the aviation industry which includes the PEST framework and Porter’s Industry Analysis. The competitive environment analysis for AirAsia Berhad is thoroughly scrutinized to examine the driving determinants that attributed to the organization’s competitive advantage in the industry. Further analysis using the BCG Matrix, lends evidence to the successful growth of the organization. Additionally, the international strategies that were implemented exhibit the foresight of the airline. The study concludes by adopting the balance scorecard framework to evaluate the organization from four pertinent perspectives of an organization which includes financial performance, customer knowledge, internal business process and learning and growth.

2.0 Introduction of AirAsia
2.1 Company OverviewAirAsia Berhad (AirAsia) is a leading Low-Cost Carrier (LCC) in the Association of Southeast Asian Nations (ASEAN) region. The Group focuses on providing high-frequency services on short-haul, point-to-point domestic and international routes. The Group implemented the low-cost carrier business model in the ASEAN region when it acquired the then loss making AirAsia from its Malaysian owner DRB-HICOM Berhad for a token of RM1 (USD0.25 cents), and agreed to assume the debts of the company. AirAsia was resurrected, re-branded and re-launched as a low-cost carrier following the acquisition of the Company by Tune Air Sdn Bhd in December 2001. With the drive and determination by Dato’ Sri Dr Tony Fernandes and with the support of his partners, the AirAsia Group (including its Thailand and Indonesian affiliates) operates a fleet of 90 aircraft and flies to more than 60 destinations from hubs in Malaysia, Thailand, Indonesia and in the upcoming future, Vietnam. AirAsia operates more than 3,500 flights a week and in its short history, has ferried more than 90 million guests. AirAsia offers a simple service at fares lower than those offered by other full-service airlines. It was modelled on U.S.-based Southwest Airlines and Dublin-based Ryanair. AirAsia was established to create a new aviation product in Malaysia, revolutionize air travel, and grow the local aviation market by providing low fares so more people can fly. AirAsia now flies to over 60 destinations in Malaysia, Thailand, Indonesia, Singapore, China, Philippines, Brunei, Cambodia, Laos, Vietnam and Myanmar. It also formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through Indonesia AirAsia, expanded its fleet from the two to twenty eight. To date the AirAsia group, has carried over 35 million guests. By serving the underserved market segment has propelled AirAsia’s popularity with the masses. With over 130 routes linking three continents, Asia’s largest low-cost carrier is proud to be a truly ASEAN carrier, linking communities, cultures and cities across this diverse region by enabling affordable and convenient travel, stimulating regional and local economies and realising the ASEAN dream of integration. The Company and Group CEO Dato’ Sri Tony Fernandes have won numerous local, regional and international awards...

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...low fares are often the deciding factors for budget-conscious travelers in Southeast Asia. This region represents a huge population, which offers low-fare airlines a vast market with promising profits. China’s huge population alone offers a great market for low-fare airlines. Demand may differ for low-fare services between the South East Asian region and in North America and Europe. In Europr and America customers the Asia Pacific region low airfare is the main driving force for choosing an airline carrier. In European and American customers usually look for a more traditional airline which offers factors such as comfort, food, cleanliness, etc… Governments pose a significant obstacle to the expansion of low-fare airlines in Asia. Government airline regulations in Asia prohibit competition to take place amongst airline carriers, allowing the government opportunities to be manipulated and bribed. The manipulation of the government by competing airlines can limit the growth for alternative airlines to offer service to Asia-Pacific regions, leading Asia to have few choices amongst air carriers.
b) Compare AirAsia’s generic strategy (cost leadership, differentiation, focus) with the strategies of other incumbent carriers and with Southwest and Ryan Air. How is it similar to and different from the strategies of those carriers?
2. Create three non-financial...

...Companies background
AirAsia Berhad is a Malaysian low-cost airline headquartered in Kuala Lumpur. It is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia.[4] AirAsia group operates scheduled domestic and international flights to 78 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia, Indonesia AirAsia, AirAsia Philippines and AirAsia Japan have hubs in Don Mueang International Airport, Soekarno–Hatta International Airport, Clark International Airport and Narita International Airport respectively. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport.
AirAsia operates with the world's lowest unit cost of USD 0.023/ASK and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilisation rate of 13 hours a day.[7] All scheduled AirAsia departures from Kuala Lumpur use the Low cost carrier terminal. AirAsia had abolished its fuel surcharges on November 2008,[8] but, due to rising oil prices, the fuel surcharge was re-introduced in May 2011.
Details:
Founded 1993
Commenced operations 18 November 1996
Hubs Kuala...

...prefer low cost. New competitors which want to come in the industry have to spend little to compete with Airasia.
ii) High capital requirement. The industry of airline needs large volume of start-up capital. The cost of setting up of offices, buying or leasing aircraft, hiring pilots and other staffs like air stewardess and etc incur a high start-up cost. Thus, the threat is low for Airasia.
iii) Different product offered. Airasia offers different product compared to other competitors in Asia like Bangkok Airways, Tiger Airways, and Air Philippines. Other than the passenger sales ticket, Airasia also include holiday packages which is affordable around Asia. Airasia has good connection with hotels and tourism companies around Asia, which it is hard for new competitors to compete.
iv) Low switching costs. Customers do not need to spend more on switching to another airline. The price would not be very significant in differences, which it depends on the availability of competitor’s services and suitability of the flight time that prompts them to switch.
v) Moderate access to distribution channel. Airasia is the first airline company to enable customer book and purchase air tickets online in Malaysia. This makes its website www.airasia.com very famous among frequent travelers. Although new competitors can create a website for their company, it is quite difficult to compete with...

...﻿In this study case of AirAsia, low price was the smartest marketing strategy AirAsia used. The company has done its research and found that there were a huge mass middle-class people that love to travel by plain. They targeted these people and offered them convenient and affordable air travel experience. By this approach, the company has satisfied its slogan “Now everyone can fly”.
Macro Environment Analysis for AirAsia
Macro factors includes Demographic, natural, technological, cultural, political and economic factors. The factors of Macro-environment suggest that there is a huge scope of growth for AirAsia in Asia. The huge population with rise in middle class and a lot of disposable income together with the absence of affordable forms of transportation post a high demand for AirAsia as a low cost airline. It is also anticipated that due to the rapid urbanization trends the air travel market will continue to grow at a fast pace. The geographical structure of Asia which is archipelago will also contribute to the air transport. Example: between East and West Malaysia there is no other alternatives mode of transport other than by air.
Micro Environment Analysis for AirAsia.
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...offering into long-haul flights and gaining additional recognition and market share is consistent with owner Tony Fernades’ company goal; however, the strategy changes required to be a successful long-haul airline significantly differ from and conflict with its current resource base (i.e. aircraft types, hubs, employee skills) and core competencies and capabilities (i.e. cost and efficiency optimization/utilization) as a low-cost carrier (LCC) airline.
Analysis
The airline industry as a whole is quite competitive with multiple players and various elements effecting the industry environment. AirAsia has developed a specific set of resources and core competencies that it has exploited in order to become the leading short-haul LCC in South East Asia. AirAsia’s strategy employs cost and efficiency optimization by utilizing its key resources; thus, possessing capabilities necessary for success.
AirAsia’s tangible resources, including its fleet and hubs, enhance the company’s low cost capabilities. Due to AirAsia’s selectivity in the type/model of aircrafts it purchases, both cost and efficiency can be capitalized. By limiting the variability in aircrafts, AirAsia is able to obtain economies in purchasing, its pool for spare parts is narrowed, thus reducing costs; mechanics and pilots’ specialized knowledge of the planes increases allowing for greater efficiency and reduced cost in maintenance, repairs, and flying. Although this strategy is ideal for AirAsia...

...eBay in Asia
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Dr. Hiatt
International Marketing
March 12, 2013
Abstract
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http://www.cs.brandeis.edu/~magnus/ief248a/eBay/history.html
Why eBay has struggled in Japan, China, and Asia
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...Unemployment and it’s situation in asia:
Introduction:
Statement of problem:
Unemployment is the number of employees who are at least 16 years old, who are not working, and who have been trying to find a job.
Lacking a job often means lacking social contact with fellow employees, lack of self-esteem, mental stress and illness, and of course the inability to pay bills and to purchase both necessities and luxuries. These effects are especially serious for those with family obligations, debts, and/or medical costs, where the availability of health insurances often linked to holding a job.
South Asia’s unemployment rate stayed at 4.7 per cent in 2005and South-East Asia and the Pacific’s unemployment rate was 6.1per cent.
Objective of the study:
Major objectives of our study related to this term paper are to discuss:
* Major causes of unemployment in developing countries
* Major effects of unemployment in developing countries
* Change in employment and unemployment pattern around the globe and with specific importance to Asian countries.
Methodology and sources of data:
Most of the data is collected from internet for this term paper. Statistics are gathered from reliable sites of ILO (International labor Organization), WB (World Bank), ADB (Asian Development Bank) and SBP (State Bank of Pakistan).
Percentages are used to discuss changing pattern of employment and unemployment.
Body:
Global cause of unemployment:...

...Opportunities- in Asia-Pacific region
To take AirAsia as an example, and use PEST analysis to look over the airline industry in the Aisa-Pacific and the differ in the Asia-Pacific region and in North America and Europe
1. Political
a) Malaysian government support
The growth of low cost airlines in south-east Asia has a significant effect on which airports will dominate the regional aviation market. Low cost airlines are seen as helping funnel more passengers to airport hubs. Therefore, there is a realization among regional governments that they need smashing airports and feisty carriers or they are going to miss out big time. Therefore, these governments are more willing to support low cost airlines. For example, the Malaysian government supported the establishment of AirAsian in 2001 to help boost the under-used Kuala Lumpur International Airport, and Thai premier’s Shin Corp. forms a join venture with AirAsia that would benefit Bangkok’s new airport and create a new hub at Chiang Mai. Therefore, under this situation, it helps AirAsia grow in Asia.
b) Political connections
Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok, Beijing, Hong Kong and Singapore there are no...